FedEx Corp.’s profit rose in the latest quarter as the delivery company benefited from tax cuts and a turnaround in its express business. Chief Executive Fred Smith said on an earnings call on Tuesday that he has never been so optimistic about the company’s future, but he warned about the potential impact of escalating tensions between the U.S. and trading partners. “Trade is a two-way street, and FedEx supports lowering trade barriers for our customers, not raising them,” he said.
Operating income in FedEx’s express business increased 11% to $990 million in the quarter. The results followed a disappointing holiday season in which that segment posted a steep profit decline. In the ground business, income increased 18% to $832 million for the period. FedEx had been investing in automating its ground unit, which sped up its service and posted strong gains in the previous quarter.
Overall revenue rose about 10% to $17.3 billion.
The Memphis, Tenn.-based company got a $1.6 billion windfall from the federal tax overhaul. FedEx said the tax cuts also led to pay increases for certain U.S. hourly workers that began in April.